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Marketing and Sponsorship

Jared Fogle Incident Proves A Cautionary Tale For Companies Using Celeb Endorsers

Subway needs to "figure out how to prevent" former spokesperson Jared Fogle from "overshadowing its future" after he agreed to plead guilty to multiple counts of distributing and receiving child pornography and paying for sex with minors, according to Candice Choi of the AP. Companies "like having famous representatives because it's a way to make people feel like that they could somehow be more like those individuals." However, those relationships "also can backfire when celebrities run into trouble" (AP, 8/19). The WALL STREET JOURNAL's Jargon & Peters cite marketing consultants as indicating that the Fogle incident is "widely expected to cause Subway to shift its marketing practices by relying less on any single spokesman, a step other companies are likely to follow." Rivkin & Associates Founder Steve Rivkin said, "This event will create a great deal of soul-searching among other advertisers that use spokespeople. The morals clause in these agreements likely will have stronger language going forward to provide for a quick separation in the event of trouble." Some marketing experts believe Subway should "quickly introduce a new face as a spokesman for the brand to help consumers forget about its association" with Fogle (WALL STREET JOURNAL, 8/20). Subway in recent years has made a deep dive into sports sponsorships, including signing several athletes to endorsement deals. The QSR's website currently lists Angels CF Mike Trout, Dodgers P Clayton Kershaw, Thunder G Russell Westbrook, NASCAR driver Carl Edwards, Gold Medal-winning gymnast Nastia Liukin and soccer legend Pele as endorsers (THE DAILY).

GETTING ANIMATED: USC Marshall School of Business assistant professor Ira Kalb said that the Fogle situation "highlights the dangers of relying on company spokespeople to represent a brand." Kalb noted a mascot often is a "safer choice" (LATIMES.com, 8/19). Indianapolis-based marketing firm Roundpeg Owner Lorraine Bell believes that it will be "quite a while before Subway hires another spokesperson," as it may "choose an animated character in its next marketing campaign" (WISHTV.com, 8/19). In Chicago, John Kass notes "bad things can happen" with celebrity endorsers, as they are "unpredictable." Ad Age Editor Ken Wheaton said, "Obviously a cartoon would be a safer choice, but it's probably not as effective a marketing choice" (CHICAGO TRIBUNE, 8/20).

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